Page 1 of 62
Econ 1010 Principles of Microeconomics Exam
QUESTIONS AND CORRECT DETAILED SOLUTIONS
LATEST UPDATED VERSION JUST RELEASED
Question: In the circular flow of economic life, which players are the main sellers in input
markets?
A) economists
B) households
C) governments
D) banks
E) businesses - ANSWER✔✔B) households
Question: In the circular flow of economic life, which players are the main buyers in output
markets?
A) economists
B) households
C) governments
, Page 2 of 62
D) banks
E) businesses - ANSWER✔✔B) households
Question: In the circular flow of economic life, which players are the main sellers in output
markets?
A) economists
B) households
C) governments
D) banks
E) businesses - ANSWER✔✔E) businesses
Question: According to the "Yes - Markets Self-Adjust" view,
A) macroeconomic outcomes are different from microeconomic outcomes.
B) Say's Law is sometimes true but usually not.
C) there are broken connections between input markets and output markets.
D) supply creates its own demand.
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E) all of the above are true. - ANSWER✔✔D) supply creates its own demand.
Question: According to the "No - Markets Fail Often" view,
A) macroeconomic outcomes differ from microeconomic outcomes.
B) Say's Law is sometimes true but usually not.
C) there are broken connections between input markets and output markets.
D) a short run focus is more important than the long run.
E) all of the above are true. - ANSWER✔✔E) all of the above are true.
Question: Which Canadian political party is most likely to support a hands-off approach by
government?
A) Conservative Party of Canada
B) Liberal Party of Canada
C) Bloc Quebecois
D) New Democratic Party
E) Green Party - ANSWER✔✔A) Conservative Party of Canada
, Page 4 of 62
Q:Macroeconomics looks at
A) the performance of the Canadian economy.
B) individual choices.
C) choices made by business people.
D) shopping.
E) why you might work more hours after a pay raise. - ANSWER✔✔A) the performance of the
Canadian economy.
Question: Macroeconomics looks at
A) the global economy.
B) individual choices.
C) choices made by business people.
D) shopping.
E) why you might work more hours after a pay raise. - ANSWER✔✔A) the global economy.
Econ 1010 Principles of Microeconomics Exam
QUESTIONS AND CORRECT DETAILED SOLUTIONS
LATEST UPDATED VERSION JUST RELEASED
Question: In the circular flow of economic life, which players are the main sellers in input
markets?
A) economists
B) households
C) governments
D) banks
E) businesses - ANSWER✔✔B) households
Question: In the circular flow of economic life, which players are the main buyers in output
markets?
A) economists
B) households
C) governments
, Page 2 of 62
D) banks
E) businesses - ANSWER✔✔B) households
Question: In the circular flow of economic life, which players are the main sellers in output
markets?
A) economists
B) households
C) governments
D) banks
E) businesses - ANSWER✔✔E) businesses
Question: According to the "Yes - Markets Self-Adjust" view,
A) macroeconomic outcomes are different from microeconomic outcomes.
B) Say's Law is sometimes true but usually not.
C) there are broken connections between input markets and output markets.
D) supply creates its own demand.
, Page 3 of 62
E) all of the above are true. - ANSWER✔✔D) supply creates its own demand.
Question: According to the "No - Markets Fail Often" view,
A) macroeconomic outcomes differ from microeconomic outcomes.
B) Say's Law is sometimes true but usually not.
C) there are broken connections between input markets and output markets.
D) a short run focus is more important than the long run.
E) all of the above are true. - ANSWER✔✔E) all of the above are true.
Question: Which Canadian political party is most likely to support a hands-off approach by
government?
A) Conservative Party of Canada
B) Liberal Party of Canada
C) Bloc Quebecois
D) New Democratic Party
E) Green Party - ANSWER✔✔A) Conservative Party of Canada
, Page 4 of 62
Q:Macroeconomics looks at
A) the performance of the Canadian economy.
B) individual choices.
C) choices made by business people.
D) shopping.
E) why you might work more hours after a pay raise. - ANSWER✔✔A) the performance of the
Canadian economy.
Question: Macroeconomics looks at
A) the global economy.
B) individual choices.
C) choices made by business people.
D) shopping.
E) why you might work more hours after a pay raise. - ANSWER✔✔A) the global economy.
